Asian Paints share price falls 2% amid reports of Reliance looking to sell entire 4.9% stake

Asian Paints share price: Shares of leading paints manufacturer Asian Paints dipped nearly 2% in Wednesday's (May 14) trading session amid reports that the Reliance group is looking to sell its entire 4.9% stake in the company.

According to a report in The Economic Times, Reliance Industries has revived its plan to sell its 4.9% stake in Asian Paints. For this purpose, it has roped in Bank of America (BofA) to manage the transaction.

This is not the first time that Reliance has considered cashing in on its investment in Asian Paints. Back in 2020, too, it had entered into discussions with banks for a potential sale of its 4.9% stake in Asian Paints.

According to yesterday's closing price of ₹2,325.10, Reliance's stake in Asian Paints is worth ₹10,925 crore. Reliance had acquired this stake in 2008 for nearly ₹500 crore, at a time when the company stock was a market darling.

However, off-late, Asian Paints stock has seen significant selling pressure amid growing competition in the paints segment, which could dethrone the company from its top spot. In the last one year alone, Asian Paints stock is down 20%, while it has declined 33% from its 52-week high of ₹3,394.

More to come...

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